Analysis: Bitcoin Spot Liquidity Weakness Due to ETF Outflows Suppressing Market, But Fund Outflows Slowing Down Showing Early Signs of Stabilization

BlockBeats News, August 17, Glassnode released the Bitcoin Market Pulse report, pointing out that Bitcoin slightly rebounded after falling from the $65,000 region in the past week, but overall remains in a clear range-bound pattern. Spot trading volume and on-chain transaction throughput continue to shrink, reflecting subdued market liquidity and participation. The derivatives market is equally cautious, with leverage moderately expanding, but perpetual contract trading continues to lean towards the sell side, showing more aggressive distribution behavior; the funding rate is positive, indicating that the bullish bias still exists, while the options market continues to price in downside protection, with its premium remaining high relative to actual volatility.

Institutional demand is weakening in sync, with spot ETF trading volume and net outflows coexisting, aggregate positions close to the cost benchmark, and limited unrealized profit space for regulated investors, causing a temporary stall in institutional accumulation. On-chain profitability is under pressure, with a large supply in a state of loss, and realized losses have consistently exceeded profit-taking.

The report also points out that the speed of broader fund outflows is starting to slow down, which is an early sign that selling pressure may be stabilizing. The overall market structure is still caught between persistent short-term selling pressure and relatively resilient long-term holdings. Weak spot liquidity, softening institutional fund inflows, and a high level of realized losses all point to continued consolidation, while the slowing outflows suggest that the market may be approaching a more balanced state before the next directional move.